加賀電子_決算動画_20200525_text有_門_英語版

5/10 Initiatives to strengthen EMS Business

This slide summarizes the work done over this past year to reinforce the competitiveness of the EMS business, the Group’s core business. These three themes are crucial to strengthening the competitiveness of the EMS business. ● “Increasing production capacity” will allow us to flexibly move production away from China as a result of the prolonged US-China trade dispute, as well as to return production in Japan, which has earned another look due to the coronavirus outbreak. ● “Strengthening manufacturing capabilities” refers to our efforts to further raise our level of quality with the acquisition of the tangible and intangible assets acquired when Towada Pioneer became a Group company in October 2019, including the manufacturing know-how accumulated over many years as a manufacturer specializing in electronics, its exceptional production personnel and production equipment, and its quality guarantee system. ● “Strengthening engineering capabilities” comprises our efforts to elevate our cost competitiveness by utilizing in-house engineering capabilities and self-developing production equipment that is ideal for “wide-ranging, low-volume convenience store EMS,” which is our strength. ● We carried out these specific initiatives in line with these three themes. As with Towada Pioneer, we began operations at a new factory in Fukushima in October 2019 and a second factory in Thailand in December. In addition, we launched two companies in Suzhou as development companies for production equipment in a joint venture with a Chinese company. 　I believe that these initiatives have provided advantages that propelled us several levels above our rivals in the EMS business.